NeoSolar To Partner With MTI Microfuel Cells

ALBANY, N.Y. & SEOUL, Korea--(BUSINESS WIRE)--MTI MicroFuel Cells Inc. (MTI Micro), the developer of Mobion® off-the-grid portable power solutions and a subsidiary of Mechanical Technology, Incorporated (MTI) (NASDAQ: MKTY), and NeoSolar (KOSDAQ: 036610), a Korean manufacturer of portable digital devices and energy products, today announced that they have entered into an agreement for the development of Mobion® fuel cell technology for use in future models of NeoSolar portable digital devices including ultra mobile portable computers (UMPCs.)

Both MTI Micro and NeoSolar will work together to develop, test, and evaluate Mobion® prototypes for their integration with a number of NeoSolar products that could lead to the use of external Mobion® power sources like chargers, snap-on attachments, and embedded Mobion® power sources for integration into various digital products.

“At NeoSolar, we want to incorporate the best technologies available into our products, and provide our customers with the most advanced features and cutting-edge functionality,” said Dr. James Y. Yu, President of NeoSolar. “This co-development agreement with MTI Micro will give us the opportunity to provide fuel cell technology with incredible benefits that may allow us to bring a new class of digital products to consumers.”

NeoSolar’s UMPCs, branded as “Wibrain” are much smaller than traditional portable notebook computers with enough processor strength to support a full operating system, as well as complete browsing, communication, video and gaming capabilities in a compact package. According to research from Frost and Sullivan, the annual portable power market for UMPCs had grown to $343 million as of the end of 2007 from $93 million in 2003 and is projected to cross the half billion dollar mark in 2010.

“Working with NeoSolar gives us access to a new segment of the consumer electronics market - UMPCs,” said Peng Lim, Chairman and CEO of MTI. “NeoSolar’s UMPCs are well suited for a new power source that can take them to the next step in their product evolution. Today’s announcement is also an important step for MTI Micro toward our goal of becoming a leading provider of portable power for handheld electronic devices.”

“MTI Micro’s effort with its third consumer electronic OEM engagement in less than a year is proof of the interest in the marketplace for direct methanol fuel cell solutions for the ever increasing number of new multi-functional devices in the consumer market that need more power,” said Sara Bradford, Research Director of Power Systems Group at Frost & Sullivan. “We believe MTI Micro is gaining momentum as its potential market opportunity has now expanded to include UMPCs.”

NeoSolar joins other consumer OEMs which have recently entered into agreements with MTI Micro to evaluate the use of Mobion® power solutions in their products. As MTI Micro continues to work towards commercialization of its Mobion® technology, it recently opened a representative office in China to allow for the development of manufacturing and low-cost component supplier relationships and entered into agreements with representatives in both Korea and Japan.